Why 5G Services Market Anticipates High Growth After Its Launch?

Mobile internet connectivity always demands increased support for data speed and volume. The latest development is the 4th generation network or long-term evolution (LTE) which supports internet speeds up to 100 Mbps. However, as customer needs, expectations and consumption increase, so does the demand for high-speed connections. And to cater this demand and maintain leadership in the mobile network market, firms are experimenting with the next generation network technology known as 5G services which are expected to be making an entry in the market by the year 2020. 5G services will offer speed upto 1 Gbps and is expected to have 1 ms latency. It is also expected to have better spectrum management capabilities, higher bandwidth support and priority based segregation of data and routeing functionality.

The emergence of Internet of Things (IoT), cloud computing and increasing trend of automated processes in industrial applications will require high speed mobile network connections. 5G services are believed to have innumerable use and applications in the years to come. These include virtual reality, augmented reality, heavy content streaming, immersive gaming experience, robotics and automation, telemedicine, tele-presence, smart transportation systems, disaster monitoring, drone technology and its application, etc. 5G services will play a critical role in the development and deployment of futuristic applications and use cases. For instance, from commercial viewpoint, future digital content will be using 4k/UHD quality, immersive augmented reality games, five-sense immersion applications, etc. From an industrial viewpoint, robotics, automation, machine-to-machine (M2M) devices, etc. will be supported by the high speed 5G technology. The high speed, low latency and the scalability of this technology will be contributing to the growth of this market. In addition to this, with the emergence of complementary technologies like software defined networking (SDN) and network functions virtualization (VFN) will enable new business opportunities and generate new revenue streams for telecom service providers by providing innovative solutions. Additionally, software defined networking and network functions virtualization will enable telecom companies to provide software and server-based infrastructure instead of hardware-based network. Also, by adopting software based network solution, the telecommunication companies could minimize their investment costs and could more easily contribute towards generating revenues. Moreover, the inculcation of SDN and NFV will provide seamless integration with telecommunication infrastructural layers.

Although the market of 5G network services will require high capital expenditure and operating expenditure, leading telecom companies in the U.S. like AT&T and Verizon Wireless are experimenting with broadband-over-power lines (BPL) technology, radio distributes antenna system (RADS) and 28Ghz spectrum which supports high speed wireless data transfer that eliminates digging of ground for laying fibre optic cables.

It is estimated that out of the 7 billion global population, approximately 6 billion have access to mobile phones. The rising demand among the users for high volume and high-speed data transfer coupled with the increased data consumption, growth in mobile traffic and the increasing demand for automation, robotics and machine-to-machine communication in industries and organization is expected to drive the 5G telecom services market in the years to come. Also, the support from private players and government is expected to drive the deployment of 5G technology. 5G services are expected to reach the consumers by the end of 2020, however, South Korea is taking lead by targeting to launch 5G services commercially by 2018 itself.

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